Wednesday 3 June: Dominant USD

I began the week with 'tentative hope' for a continuation of 'risk on movement' in the currencies. That hope has slowly dwindled thanks to a stalemate between the US and IRAN. President Trump's recent comments that the strait of Hormuz 'should' be open by labour day doesn't particularly bode well (labour day is in September). Combined with this week's solid US data, it all equalls the perfect storm for the USD.

Arguably it's not too late today for a 1:1 USD long but as things stand I'll be waiting for a 15 or 30 pullback before considering a trade.

As ever, we are only a postive headline away from a narrative flip. But for now I have USD long trades on my radar.

Please feel free to email any thoughts or questions: johnelfedforexblog@gmail.com